Work during retirement
The labor market is becoming increasingly competitive. Technology, meanwhile, is changing rapidly. Older employees can quickly find themselves on the sidelines.
Employees approaching retirement age may be less motivated. His or her performance may start to fall short. Health or behavioral problems can also be a factor... All of these factors can lead an employer to terminate an employment contract. Such a dismissal can however be problematic.
Duty to assist
By law, the employer is required to protect the personality of his/her employees. He or she has a greater duty of care towards his or her employees who are close to retirement and who have worked for him/her for a large part of their career.
Dismissal without further measures of an older employee with a long service may be considered as wrongful. This principle also applies if the quality of the work or the motivation of the employee is not satisfactory.
Continuing to work after retirement age
Some employees wish to continue working after reaching retirement age, either because they want to remain active during their retirement or because it is economically necessary. If the employer wishes to terminate the employment contract automatically at the age of 65 for men and 64 for women, this must be expressly agreed in advance.
New employment contract
If the employee continues to work during his/her retirement, his/her age and his/her health, which may become impaired, must be taken into account. It is in the interest of both the employer and the employee to provide for shorter periods of leave in order to facilitate resignation or dismissal.
Occupational pension plan
Despite his/her lucrative activity, the employee will receive his/her AVS pension at retirement age, i.e. 65 years for men and 64 years for women. Whether the employee will receive his/her second pillar pension at retirement age or whether he/she can request that it be postponed depends on the pension fund to which he/she is affiliated.
In principle, employees who continue to work after retirement age are not exempt from paying all social security contributions. However, the amount of the salary on which he/she will pay these contributions changes.
Loss of earnings insurance
Older people are more likely to fall ill or have an accident. Some loss of earnings insurances limit or cancel their coverage after a certain age, usually retirement age. In such a case, without insurance, the employer will have to pay his/her salary in case of incapacity to work for a certain period of time.